(The Canadian Press)

(The Canadian Press)

Fragmented bus service market emerges as Greyhound exits Western Canada Oct. 31

The company is laying off about 420 employees

A hodge-podge of public transportation services are already starting to fill the gap as Greyhound Canada moves steadily towards its midnight Halloween disappearance from most of Western Canada.

The venerable national motor coach operator is being replaced by a mix of provincial government-subsidized services, Indigenous-owned bus lines, locally owned startups, flexible fleets of shuttle buses and a scattering of formal and informal ride-sharing services.

And passengers aren’t waiting for the last Greyhound next Wednesday to check out new options — according to Stuart Kendrick, senior vice-president of Greyhound Canada, ticket sales have already fallen off to the point that some route frequencies are being reduced.

“Demand is quite low as we run into this last week or 10 days,” he said in a recent interview.

“You’ve got single-digit riderships on the schedule that we have left throughout Western Canada, so that’s probably about a 50 or 60 or 70 per cent decline based on what corridor you look at.”

The company plans to stop selling tickets on long-distance routes a few days before the buses stop running to help ensure passengers aren’t left stranded and holding the unused half of a two-way ticket, Kendrick said.

READ MORE: New bus route to ‘replace’ Greyhound along Trans-Canada Highway

The loss of Greyhound spells opportunity for Regina-based Rider Express, a company that began operating a handful of 15-passenger minibuses on inner-provincial routes shortly after government-owned Saskatchewan Transportation Company shut down its bus services in the spring of 2017.

Rider has acquired five full-sized 50-seat buses and plans to begin passenger service on a Vancouver-Calgary-Winnipeg route on the Trans-Canada Highway this week, followed in November by a Highway 16 route linking Edmonton and Saskatoon, said manager Shauna Hardy. Both routes will directly replace Greyhound routes.

The interest from Saskatchewan residents has been “overwhelming,” she said, adding the company is being asked to take on more routes but has so far declined.

Late last May, Calgary-based Pacific Western Transportation was hired by the province of British Columbia to operate its BC Bus North service after Greyhound cancelled service to communities including Prince Rupert and Dawson Creek.

Greyhound’s announcement in July that it would exit almost all of Western Canada convinced the company to offer its own inter-city services in B.C. for the first time, said John Stepovy, director of business development. He added the company is also expanding its Alberta offerings.

He said he thinks his company can provide the hub in a hub-and-spoke business model as Greyhound closes — it’s already in discussions with operators of small-scale shuttle bus and transit operators about establishing connections with his firm’s routes.

“Overall, long-term, where the needs are, where there’s demand, we would anticipate voids will be filled but it could take a little bit of time for those things to shake out once the landscape changes,” Stepovy said.

“Discount airlines coming in will probably take on some of that longer-haul (Greyhound demand),” he said. “For bus travel, That one-to-five/six-hour travel time is kind of in the sweet spot.”

He added “disruptors” — new travel options such as Poparides, an app that matches passengers with drivers who happen to be going to the same destinations — are also expected to fill the gap.

Indigenous-owned charter service Kelsey Bus Lines is being renamed Mahihkan Bus Lines and has announced plans to offer daily passenger routes from Thompson and Flin Flon in northern Manitoba to Winnipeg, as well as freight service.

In Alberta, the provincial government has launched pilot programs at a cost of $2.8 million to help five rural municipalities start inter-city bus services. One, centred on Camrose, about 100 kilometres south of Edmonton, has already started and the others are expected to begin over the next three months.

The fragmented inter-city transportation model that is emerging can be a positive change, said Barry Prentice, professor of transportation economics at the University of Manitoba’s Asper School of Business.

Greyhound likely failed in Western Canada in part because its costs were too high and it lacked the flexibility to respond to changing markets because it carried freight as well as passengers, he said.

“As long as they were in the market, it was hard for anyone else to come in. Now that they’re gone, it creates an opportunity,” he said.

Most new services are planning to pick up and drop off passengers at hotels, gas stations or tourist information centres. Prentice said that means they won’t be burdened with the costly terminal network Greyhound had to maintain.

Kendrick said shutting down all routes from northern Ontario to the West Coast involves a “significant cost’ to Greyhound Canada.

He said it’s expected to take several months to sublet its leased real estate and sell its few owned facilities, which include maintenance shops in centres such as Edmonton, Red Deer, Prince Rupert, Prince George and Winnipeg.

The company is laying off about 420 employees. It will move 70 or 80 of its 110 western buses to its ongoing operations in Eastern Canada and sell or scrap the rest.

A Seattle-Vancouver route operated by Greyhound U.S. will continue to use a Vancouver terminal leased by the Canadian arm. Kendrick said the company plans to ask other bus companies to come in as tenants to fill unused capacity there.

Dan Healing, The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Flora Northwest was taken to the Ermineskin residential school when she was six years old. (Emily Jaycox/Ponoka News)
Ermineskin residential school survivor: ‘It just brings me back to the cries at night’

Discovery in Kamloops of remains of 215 children a painful time for survivors

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Red Deer drops to 71 active cases of COVID-19

Province adds 127 new cases of the virus

Police officers and their dogs undergo training at the RCMP Police Dog Services training centre in Innisfail, Alta., on Wednesday, July 15, 2015. Mounties say they are searching for an armed and dangerous man near a provincial park in northern Alberta who is believed to have shot and killed a service dog during a police chase. THE CANADIAN PRESS/Jeff McIntosh
RCMP search for armed man in northern Alberta after police dog shot and killed

Cpl. Deanna Fontaine says a police service dog named Jago was shot during the pursuit

Alberta now has 2,336 active cases of COVID-19, with 237 people in hospital, including 58 in intensive care. (Black Press file photo)
Red Deer down to 73 active cases of COVID-19, lowest since early November

The Central zone has 253 active cases of the virus

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

Orange shirts, shoes, flowers and messages are displayed on the steps outside the legislature in Victoria, B.C., on Tuesday, June 8, 2021 following a ceremony hosted by the Songhees and Esquimalt First Nations in honour of the 215 residential school children whose remains have been discovered buried near the facility in Kamloops, B.C. THE CANADIAN PRESS/Chad Hipolito
Alberta city cancels Canada Day fireworks at site of former residential school

City of St. Albert says that the are where the display was planned, is the site of the former Youville Residential School

Barbara Violo, pharmacist and owner of The Junction Chemist Pharmacy, draws up a dose behind vials of both Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines on the counter, in Toronto, Friday, June 18, 2021. An independent vaccine tracker website founded by a University of Saskatchewan student says just over 20 per cent of eligible Canadians — those 12 years old and above — are now fully vaccinated. THE CANADIAN PRESS/Nathan Denette
At least 20% of eligible Canadians fully vaccinated, 75% with one dose: data

Earlier projections for reopening at this milestone didn’t include Delta variant

This undated file photo provided by Ernie Carswell & Partners shows the home featured in the opening and closing scenes of The Brady Bunch in Los Angeles. Do you know the occupation of Mike Brady, the father in this show about a blended family? (Anthony Barcelo/Ernie Carswell & Partners via AP, File)
QUIZ: A celebration of dad on Father’s Day

How much do you know about famous fathers?

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
Canadians who got AstraZeneca shot can now see ‘Springsteen on Broadway’

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

A lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018.THE CANADIAN PRESS
No winning ticket sold for Friday’s $70 million Lotto Max jackpot

The huge jackpot has remained unclaimed for several weeks now

Most Read